Dipo Olowookere
By Cowry Asset
In line with our expectation, the Naira/Dollar exchange rate was relatively stable week-on-week at the Bureau De Change and Parallel market segments by at N360/USD and N363/USD respectively. This was amid injections by the CBN worth $195 million into the foreign exchange market of which
$100 million was allocated to Wholesale (SMIS), $50 million was allocated to Small and Medium Scale Enterprises and $45 million was sold for invisibles.
At the Investors & Exporters Forex Window (I&E FXW), the local currency appreciated against the Dollar by 0.05% to N360.08/USD.
The local currency however weakened by 0.10% to N329.75/USD at the interbank market (NIFEX).
Meanwhile, dated forward contracts at the interbank OTC segment mostly appreciated amid increase in the foreign exchange reserves –external reserves increased week-on-week by 0.62% to USD34.07 billion as at Wednesday, November 08, 2017.
The 1 month, 2 months and 3 months contracts appreciated w-o-w by 0.07%, 0.08% and 0.03% to close at N365.85/USD, N371.55/USD and N377.66/USD respectively.
This week, we retain our stable outlook for the exchange rate amid sustained stability in global crude oil prices which should result in further build-up in foreign reserves as well as CBN’s continued intervention in the various segments of the interbank foreign exchange market.
